Tariffs have been applied over the years to protect homegrown industries and target competitors who are seen as using unfair trade practices. They impose costs on both importers and exporters and had been in decline until the recent U.S.-China trade war.

China’s industrial policy is aimed at rapidly expanding its high-tech sectors and developing its advanced manufacturing base. The plan is seen as a threat by President Trump, and could escalate the trade war.

Chinese President Xi Jinping’s signature project, the Belt and Road Initiative, got a boost when Italy became the first major European country to join. What was behind Italy’s decision and what might it mean for allies in the United States and the EU?